HI HB1527

Requires the state auditor to periodically review specific tax credits, exclusions, and deductions under Hawaii's income tax and financial institutions tax chapters to assess their merit and continued necessity.

Auditor must evaluate each provision by determining tax expenditure amounts for the previous three fiscal years, estimating costs for the current and next two years, and assessing whether the provision achieved its legislative purpose.

Auditor must analyze whether each provision promotes tax equity or efficiency, quantify economic or employment benefits if applicable, and estimate annual costs per low-income state resident.

Reviews are staggered across five cohorts conducted in 2019, 2020, 2021, 2022, and 2023, then repeated every five years thereafter, covering 28 specific tax provisions including renewable energy credits, film production credits, and high technology business exclusions.

Auditor shall submit findings and recommendations to the legislature and governor at least 20 days before the next regular legislative session, with the authority to recommend retention, modification, or repeal of each provision, or its removal from future reviews.